02175cam a22002897 4500001000700000003000500007005001700012008004100029100001800070245017300088260006600261490004200327500001500369520073900384530006101123538007201184538003601256690008801292690008101380690012901461690007401590700002701664710004201691830007701733856003801810856003701848w12330NBER20180524153347.0180524s2006 mau||||fs|||| 000 0 eng d1 aKohara, Miki.10aDo Borrowing Constraints Matter? An Analysis of Why the Permanent Income Hypothesis Does Not Apply in Japanh[electronic resource] /cMiki Kohara, Charles Yuji Horioka. aCambridge, Mass.bNational Bureau of Economic Researchc2006.1 aNBER working paper seriesvno. w12330 aJune 2006.3 aWe use micro data on young married households from the Japanese Panel Survey of Consumers in order to analyze the importance of borrowing constraints in Japan. We find (1) that 8 to 15 percent of young married Japanese households are borrowing-constrained, (2) that household assets and the husband's educational attainment are the most important determinants of whether or not a household is borrowing-constrained, and (3) that the Euler equation implication is rejected for both the full sample and for the subsample of unconstrained households. These results suggest that the life cycle/permanent income hypothesis does not apply in Japan and that the presence of borrowing constraints is not the main reason why it does not apply. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aD1 - Household Behavior and Family Economics2Journal of Economic Literature class. 7aD9 - Micro-Based Behavioral Economics2Journal of Economic Literature class. 7aE2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy2Journal of Economic Literature class. 7aG1 - General Financial Markets2Journal of Economic Literature class.1 aHorioka, Charles Yuji.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w12330.4 uhttp://www.nber.org/papers/w1233041uhttp://dx.doi.org/10.3386/w12330